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Teck ups stake in Chile Quebrada Blanca copper mine in $162.5 million deal

Vancouver-based miner says move simplifies ownership of project
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Quebrada Blanca open pit mine is nearing the end of its life, but an expansion would keep it producing for at least another 25 years | Teck

Canada's largest diversified miner, Teck Resources (TSX:TECK.A | TECK.B)(NYSE:TCK), said Wednesday it had increase to 90% its stake in Compañía Minera Teck Quebrada Blanca, which main asset is the namesake copper project in Northern Chile.

The Vancouver-based miner said the deal, , worth $162.5 million, simplifies the ownership of Quebrada Blanca, giving Teck additional flexibility with respect to financing options for the project and a planned expansion, known as “Phase 2”.

“Quebrada Blanca Phase 2 is a high quality, long-life asset in a low risk jurisdiction that will operate through multiple price cycles at a low-cost, substantially increase Teck’s copper production, and generate significant value,” the company’s President and CEO, Don Lindsay, said in the statement.

In February, Teck said a decision on whether or not to go ahead with Phase 2 at Quebrada Blanca depended on regulatory approvals and market conditions, adding that the company would determine that option in the second half of 2018.

If Teck decides to move forward with the mine expansion, the development of the hypogene ore body would come at a hefty price tag of some $4.7 billion for major infrastructure investments, including a new concentrator and desalination plant and pipeline. But the mine is nearing the end of its life and the expansion will keep it producing for at least another 25 years.

Last year, Quebrada Blanca produced 23 million tonnes of copper, generating a $182 million-revenue.